Johnson & Johnson (NYSE:JNJ) shares ticked up today on third-quarter results that topped the consensus earnings forecast.
The New Brunswick, N.J.-based company posted profits of $3.7 billion, or $1.37 per share, on sales of $23.3 billion for the three months ended Sept. 30, 2021, for a 3.2% bottom-line gain on sales growth of 10.7%.
Adjusted to exclude one-time items, earnings per share were $2.60, 25¢ ahead of Wall Street, where analysts were looking for sales of $23.7 billion.
Each of J&J’s segments saw year-over-year revenue growth, with pharmaceuticals (13.8% increase from 2020) and medical devices (8%) experiencing significant upticks.
“Our third-quarter results demonstrate solid performance across Johnson & Johnson, driven by robust above-market results in pharmaceuticals, ongoing recovery in medical devices, and strong growth in consumer health,” J&J chair & CEO Alex Gorsky said in a news release. “In the face of evolving marketplace dynamics resulting from the effects of COVID-19 and other global trends, we have continued to demonstrate the responsiveness and agility required to meet the needs of our stakeholders while also successfully investing in a pipeline of innovation and key commercial platforms to drive our future growth. I am incredibly proud of our company’s transformative growth over the last decade.
“As I prepare to transition the role of CEO to Joaquin Duato in January, I want to extend my deepest gratitude to our colleagues around the globe who work tirelessly to deliver solutions to address the world’s most urgent and unmet healthcare challenges.”
Johnson & Johnson said it now expects to log full-year adjusted EPS of between $9.65 and $9.70, compared with $9.50 to $9.60 previously, and updated its sales guidance for between $91.6 billion and $92.1 billion, excluding the company’s COVID-19 vaccine.
Including the sales generated by the company’s COVID-19 vaccine, Johnson & Johnson projects full-year sales of between $94.1 billion and $94.6 billion.
Truist analysts David Rescott and Samuel Brodovsky noted that, while Johnson & Johnson’s performance against Wall Street estimates was mixed as COVID-19 impacted procedures in the quarter, management holds a confident view on ongoing recovery and long-term drivers.
“We think the print was about in-line with expectations, and positive comments on the recovery should provide some confidence in the sector into 4Q and 2022,” the analysts said.
JNJ shares were up 1% at $161.62 per share in early-morning trading. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 0.3%.